Brazilian PE Adds Ketchup to its Burgers

Brazilian PE Adds Ketchup to its Burgers

February 15, 2013

Brazilian-backed private equity firm 3G Capital has partnered with Berkshire Hathaway to purchase condiment maker HJ Heinz for $28bn, the parties say. The total value includes $5bn in assumed debt. Berkshire and 3G, a firm founded by Brazilian billionaire Jorge Paulo Lemann, are each contributing about $4bn cash to pay for the deal, with Berkshire also paying $8bn for preferred shares. The deal also includes bridge lending from JPMorgan and Wells Fargo. The buyers will pay $72.50 per share, which compares with the previous day’s $60.48 closing price. Shares closed at $72.50 Thursday. The Brazilian-backed PE shop previously made international headlines in 2010 with the $4bn buyout of Burger King, which it took public last year. Lazard, JPMorgan and Wells Fargo advised the Berkshire-3G consortium, with Kirkland & Ellis advising 3G on the legal side. Centerview Partners and Bank of America Merrill Lynch were financial advisors to the target, and Davis Polk the legal advisor. The sale is expected to close in 3Q 2013.

Brazilian-backed private equity firm 3G Capital has partnered with Berkshire Hathaway to purchase condiment maker HJ Heinz for $28bn, the parties say. The total value includes $5bn in assumed debt. Berkshire and 3G, a firm founded by Brazilian billionaire Jorge Paulo Lemann, are each contributing about $4bn cash to pay for the deal, with Berkshire also paying $8bn for preferred shares. The deal also includes bridge lending from JPMorgan and Wells Fargo. The buyers will pay $72.50 per share, whic